Presentation on theme: "The SEC Power Forum Eng. Salah Bahobail"— Presentation transcript:
1 The SEC Power Forum Eng. Salah Bahobail Session II: Economic Impact of expanding the Local Power CapabilitiesEng. Salah BahobailDirector, Economic Planning DepartmentRoyal Commission for Yunbu
2 Royal Commission for Jubail and Yanbu Royal Commission At Yanbu Nationalizing industries related to water desalination and major Saudi industries InitiativeSEC Power Forum - Riyadh, May 11,2013
3 Contents Global Facts & Figures Kingdom Facts & Figures Investment OpportunitiesNationalization Initiative.“Desalination and Major industries Park at Yanbu Industrial City”.
4 Global Desalination Facts & Figures The demand for desalination capacity globally is projected to double by 2016.Saudi Arabia is the #1 in desalination capacity in the world.15,988 plants in operation in the world244 plants under construction2011 = 66.5 million cubic meters per day2016 = 132 million cubic meters per dayDesalination CapacitySaudi ArabiaUSAUAESpainKuwaitChinaJapanQatarAlgeriaAustraliaSource: IDA 2010.
5 Desalination Investment 2010 - 2016 The global desalination industry requires SR 393billion ($105 b) in capital investment from 2010 to 2016.% (~$57.5 billion) of this investment will be directed toward the MENA region.The Kingdom represents 18% of the world’s desalinated production.SWCC plans to invest SR133 b. ($35 billion) in next decade.المصدر: IDA 2010
6 Global Desalination Facts & Figures There are 115 countries that have plants to desalinate water.SWCC capital investment in 2012 is SR15.5b ($4.1 billion).Yanbu- Medinah plant under construction cost is $1.05 billion.
7 Kingdom Desalination Facts & Figures A total of 50% of all drinking water in the Kingdom comes from desalination.The Kingdom has the world’s highest water consumption per capita – more than 250 liters per person per day.Water demand is rising at the rate of 7% per year.The Kingdom has more than 35 desalination plants located in 16 cities.The amount of energy used for desalination is more than 50% of the total production cost.Many of the Kingdom’s water plants built in the 1970’s are nearing the end of their useful work lifeSource: The Oil & Gas Year Saudi Arabia 2012; SWCC.
8 Desalination Industry Requirements There are 7 major products, services and suppliers required to support the desalination industry.Desalination Industry1. Chemicals2. Component Manufacturers3. Tubing & Pipes4. Membranes & Pressure Valves5. Instruments & Control Systems6. Treatment System Suppliers7. Water Storage Tanks
9 Spare part market in Kingdom Some studies estimate that the size of the market for specialized materials and spare parts for desalination and major companies in kingdom exceed SR 200 billion annually.
10 Investment Opportunities in SWECC Saudi Arabia is among the top countries with the appropriate environment for investment where all key factors for investment are as follows:1 – Governmental support.2 - Financial support.3 – Strategic location.4 – Available workforce.
12 Mechanical Opportunities Mechanical opportunities represent the largest share of other opportunities because of the nature of the production equipment of water and electricity.Mechanical opportunities include the following:1 - pumps and parts.2 - valves and parts.
18 Chemical Investment Opportunities Used for a number of chemical products in the various plants and numbering about 64 products and most of them are imported from outside the Kingdom.The annual consumption of chemicalsSR 133, 646, 306
19 The annual consumption rate of the most consumed chemicals (tons / year) by SWCC only
20 The annual consumption rate of the most consumed chemicals (tons / year) by SWCC only
21 Cost of spare parts and chemicals for the year 2012 (in millions of SR) by SWCC only
22 Nationalization Initiative Partners Saline water conversion corporationSaudi Electricity companyMinistry of Water & ElectricityPower and water utility company for J&Y (MRAFIQ)SABICSaudi Arabian Mining CompanySaudi AramcoIndustrial clusterMinistry of petroleum & mineralsRoyal commission for yanbu
23 Nationalization Initiative The Initiative is based on:Strategic procurement concept.Actual Market data.Actual growth data.Nationalization Incentives.
24 Nationalization Initiative The partners have prepared a program to collect and list economically viable for industrialization spare parts.Identified five groups for common template :PumpsvalvesMotorsGaugesBearingAn economic feasibility studies will select the top 100 industries as first phase to be nationalized in Yanbu Industrial City.
25 RC-Yanbu Desalination Park RC-Yanbu has set aside a prime industrial area tosupport “ the desalination Park”.
26 RC-Yanbu Desalination Park Several of Yanbu’s existing industries are positioned to contribute to the desalination industry.Chemicals:CristalPrime Basic ChemicalsJalal A-Sayed FactoryMechema Chemicals InternationalNalco Saudi CompanyTubing, Pipes & Metal Processing:Saudi HepcoAl-Altoun Factory for SteelYanbu Steel Co.Al-Yusr, Townsend & BottumSaudi Belleli Heavy Industry Ltd.Olayan Descon Industrial Co.Shairco Fiber GlassTarik Alzahid AluminumSaudi Superlit Co.Valves:Saudi Fal Company Ltd.Youssef Zahran EngineeringDesalination IndustryChemicalsComponent ManufacturersTubing & PipesMembranes & ValvesInstruments & Control SystemsTreatment System SuppliersWater Storage TanksPotential Opportunities include:Components ManufacturersInstruments & Control SystemsTreatment System SuppliersMembrane manufacturersWater storage tanks
27 Nationalization Incentives RC-Yanbu Offers the option to provide ”Plug & Play” sites.
28 Royal Commission for Jubail and Yanbu Royal Commission At Yanbu Thank You!Thank You